I've got a similar situation to resolve. First purchase mortgage and a heloc. Both loans were sold during 2018 to new lenders /servicers. Based upon the feedback above, I've "zeroed out" the ending balance of the two original loans. The problem is now that the "Average Balance" is overstated because all 4 loans have "beginning of the year balances." Intuitively, I have tried to go in to the "new" loans (for the acquiring servicers) and set the beginning of year balances to $0 (which they were at the beginning of the year). Turbotax doesn't like the "$0" balance figure and is requiring that I put some value in. Should it be $1? or $0.01? With the "Average Loan Balance" being 2X due to loans having initial balances, the deduction is being limited unnecessarily. How can I rectify the problem?
